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Development Finance

Development finance loans

Our number one aim is to complete bridging loan and development finance cases in the quickest possible time frame and our average throughput from acceptance of offer to completion and pay-out is no more than a few days. We would never confess to being the cheapest lender in town but as far as we are concerned, we are the most flexible and quickest. We have very few standard lender requirements however we are totally responsible in our lending capacity. We complete all paperwork and get to know all of our clients in depth from the beginning which most importantly includes ensuring a solid and firm exit route.

Important features of development finance products include:

  • Bespoke funding to suit all requirements
  • Available for new developments and conversions
  • Suitable for single and multi-unit projects
  • Funding for joint venture projects
  • Available for residential and semi-commercial properties
  • Land purchases included
  • Finance for any level of experience

Typical financial features of development finance products include:

  • Up to 90% loan to cost
  • Up to 70% loan to GDV
  • Funding available from £25,000 to £10 million

How Long Does a Development Finance Term Last?

All development finance products are tailored to meet the unique requirements of the project being undertaken. A typical development finance loan will be issued for a maximum period of 24 months, but there are exceptions where the term can be longer.

Some development finance loans may be issued for as little as six months if the borrower wishes to repay the loan as quickly as possible.  Early repayment can pave the way for preferential interest rates and lower overall borrowing costs.

How to Apply for Property Development Finance

The key to a smooth development finance application lies in conducting extensive research and performing due diligence. Lenders expect applicants to ensure all possible eventualities have been factored in and the project’s success is assured.

It is the viability of the project upon which the lender will base their decision, so providing as much supplementary evidence as possible is essential.

An experienced property developer with an established track record may find it easier to qualify than a first-time developer. However, the flexibility of development finance enables specialist lenders to create bespoke packages to suit almost all requirements.

Applying for development finance via an experienced broker is essential to ensure you get the best possible deal.

How is Development Finance Repaid?

Development finance will only be granted by a lender when a clear exit plan has been outlined by the applicant. The three most common exit strategies for development finance are as follows:

  1. Sale of the finished property or site – upon completion of the project
  2. Refinancing with a specialist exit product – a loan typically issued at a lower rate of interest, enabling the developer to pay off the initial loan and bridge the financial gap until the property is sold.
  3. Long term refinancing – where the development finance loan is switched to a more conventional long-term loan. This is often the preferred option for developers looking to maintain ownership of their property, either for personal use or to let out.

For more information on any of the above or to discuss the features of development finance in more detail, call UKbridgingloans.co.uk for an obligation-free consultation.

UK Bridging Loans Limited does not undertake/enter into any type of FCA regulated loans as set out in the FCA Regulated Activities Order.
Registered office: 7 Kevern Close, Wigston, Leicester, LE182GR.
All calls are recorded for training and compliance purposes.

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